The Rise of the Russell 2000, Financial Restraint: Manage Market Trends

The Dow Jones Commercial Reasonable (^DJI) entered a document similar to the S&P 500 (^GSPC), finishing a little under a document top in Monday’s consultation. Yahoo Finance reporter Josh Schafer joins Requesting a Pattern to talk about his findings from a life of buying and selling.

First, he cites the ongoing expansion of the market as an important development. Power (XLE), Financials (XLF), and Industrials (XLI) all led the market rally Month Tech (XLP) lagged the S&P 500 slightly over the past five days.

Next, the Russell 2000 (^RUT) has reached its highest level since 2022. As additional fiscal information weighs in on inflation, confidence in the possibility of a September price cut increases, giving a boost to small caps.

Finally, indicators of complete slowdown in the economic system are visible. As June’s retail gross sales record is set to be missed on Tuesday, Wall Side Street expects gross sales to decline by about 0.2%. Schaefer points out that if the print is available with expectations, it may provide some other level of information suggesting that the economic system is reacting better to interest rates. This is able to give additional confidence to the Federal Reserve to initiate interest rate cuts.

For more intelligent insights and real market action, click here to watch this entire episode of Requesting a Pattern.

This post was written by Melanie Riehl

video transcript

The Dow life takeaway that hits a new document in the same month as the S&P 500 is the additional life of a document ends when buying and selling.

Let’s come to Josh, the very personal, Josh Schaefer of Yahoo Finance.

Hi Josh.

Yes, we’ve been following the extension of this hold market rally over the past few days and we’ve been given some additional signals from it, particularly with the Russell 2000 and the type of momentum the area is experiencing.

So I’m going to start with the circular motion that we had these days.

You’ll see up front there, you had energy and financials and industrials majors, you probably have technology coming off of the S and P500.

You also have conversation services and products, not really at the entrance of it.

And that’s actually been the trend over the last five days as we’ve had a record inflation rate that came in higher than expected and September price cuts have started in the market.

This has been the fashion.

This has been an extension of the rally testing key real estate and interest rate sensitive areas of the S and P500 sectors.

After all, when you zoom out on the day.

That’s not the story, is it?

This has been all the mega cap techniques and the closest look those others have gotten is a look at real assets.

It’s a little higher during the day.

So that you can roughly see this change in this rotation.

the story continues

In fact, this is not the first hour that we have discussed the extension of the hold market rally.

We mentioned it a little bit again in February March.

We discussed it in late December and it didn’t really catch on.

So broadly the main question that I’m talking to strategists about these days is just, will this be sustained and what kind of snatches are there to stick to?

I believe this is where we are right now.

When you talk to those other guys, Josh, what kind of signals, alerts do they look for whether you know that the rotation is actually sustained.

So here’s a huge thing that Ong Kwong’s Depot of America highlighted to me is the profit expectations for Magazine Seven as opposed to the S and P 500.

So magazine seven is in Crimson, S and P5.

S and P504 93 residues are in white blue.

The important thing is that here our eyes are moving upwards and we are not seeing the blue exit for a long time.

Appropriate.

Tactically, this quarter you need to look at the 493 that emerged during the downturn in your profits and start increasing fixed profits.

And the most important question will be, do they do it?

These are simply expectations as a result of thought.

Wall Side Road expects just that.

So can we achieve this?

And whether it progresses during the remainder of the day is no doubt one of the key primary questions?

And the closest really, is the fed price trim aspect of it, proper.

And can we get the cut we’re pricing for?

Do they come?

And if they come, what numbers are we getting?

Is it because the economic system is working properly or is it impure?

This is the kind of place where the gateway to questions is right here.

And that connects us to our second topic.

Dimension Corporation.

Certainly, the Russell 2000 has reached its best phase in the two years since 2022.

And I’ll just create a chart for us right here.

Although in reality, the Russell has largely been a great parameter for how the population is feeling about price cuts in the days when the population is pricing in additional cuts, perhaps pricing in Fed easing. Is determining.

You will see that Russell works smartly.

So we’ll jump right here to IWM which follows the Russell 2000 and I believe it’s up about 7% over the last 5 days.

Yes, 7% in the last five days.

So it’s actually inflated compared to the S and P500.

Is that so, do you think this rally is within the short’s reach?

JOSH Dare I say speed alone cuts expectations?

Book it that easy.

Its.

And what’s interesting is if I’m able to get us here from one day to one year, you’ll see that we already have this happening and it keeps falling over time.

Appropriate.

We get this rally.

This is the time when the population was feeling more positive and it almost fell.

One of the attention-grabbing strategists who were telling me these days was Kelly Cox at R. Holt’s Wealth Control.

She mentioned that she would think about it after we got the trim.

So if a trim is available in September, in most cases small caps will rise when the trim arrives.

So it’s interesting that we’re starting to see this action now, but some strategists don’t necessarily think it’s going to stick.

He suspects the true rally is almost certainly coming, we will get that trim.

And unless we get a surprise in July, it doesn’t make sense to come back at this point, Josh.

Everything is fine.

The third Schaefer takeaway, the third takeaway and I’ve fine-tuned many of these in detail as we have retail gross sales in the coming day and that’s the item I’ve taken away from conversations with other people. There used to be days of things like retail sales.

You have to keep coming roughly as the knowledge is coming which is neither too hot, nor too cold.

You look at the expectations coming the next day.

If you exclude autos and fuel, retail gross sales are projected to decline by about 0.2%, which is a good record for the market.

You don’t need a very attractive host where the population is going to be interested in inflation, although you don’t need weak volumes either.

People are concerned about financial information being unsafe.

And if financial information is available unsecured and that’s why we get cuts to all the broader things that we just discussed for five minutes, then that whole evolution is largely going out the window because You want the economy to do well.

So it will be attention-grabbing.

Just keep watching for studies like that on 830 when they come to the market for massive financial information.

This, this is all that we were given at this time.

Really, Josh?

Everything is fine.

Until Netflix profits.

Appropriate.

Thanks, Josh.

Appreciate it.